Selangor Properties replenishes landbank to launch residential projects

KUALA LUMPUR (April 10): Selangor Properties Bhd ( Financial Dashboard) is replenishing its landbank to undertake more residential projects.

Chief operating officer Chong Koon San said Selangor Properties (fundamental: 1.25; valuation: 2) had an existing 106ha (264-acre) landbank within Klang Valley enclaves of Damansara Heights, Hulu Langat, Selanyang and Gombak.

He said the group had engaged property consultants to look for suitable tracts in the Klang Valley, and was also talking directly to several land owners.

"The current landbank is enough to last for the next 10 years. But being a property developer, we must also look at avenues to replenish landbank," he told reporters after Selangor Properties' annual general meeting here today.

The launch of the developer's RM125 million residential project in Bukit Permata, Gombak will be closely watched.

Chong said the project would be a catalyst to Selangor Properties' earnings in current financial year ending Oct 31, 2015 (FY15).

"This is, will be our catalyst this year. I am hoping that the residential projects, which include semi-detached houses and bungalows, will contribute positive[ly] to our earnings beginning financial year FY15 onward.

"The delay in launch of the project at Bukit Permata was due to longer time required for the building plan approval. But it will be unveiled in the middle of this year," he said.

Chong said the semi-detached houses are expected to be priced from RM1.8 million each, while the bungalows will be priced from RM2 million a unit.

At 3:24pm, Selangor Properties share rose two sen or 0.4% to RM5.50, for a market capitalisation of RM1.9 billion. The stock saw thin trade of 6,600 shares.

The company's latest reported book value stood at RM6.11 a share.